The Enron scandal was an Accounting scandal of Enron corporation, an American energy company based in Houston, Texas. it was founded in 1985 as a merger between Houston natural gas and inter North, both relatively small regional companies. Enron scandal, series of events that resulted in the bankruptcy of the U.S. energy, commodities and services company Enron Corporation and the dissolution of Arthur Andersen LLP, which had been one of the largest auditing and accounting companies in the world. on may 25, 2006, a jury in a Houston Texas court found both skilling and lay guilty. jeff skilling was convicted of 19 counts of conspiracy, fraud, insider trading and making false statements. Ken Lay was convicted of six counts of conspiracy and fraud. Enron faced an ethical accounting scandal in 2001 after using 'mark-to- market" accounting to fake their profits and misused special purpose entities, or SPEs. Enron worked to make their losses look like less than they actually were, and

'cooked the books" to make their income look much higher than it was. Enron hide its Debt. Fastow and others at Enron orchestrated a scheme to use off- balance-sheet special purpose vehicles, also known as special purpose entities, to hide its mountains of debt and toxic assets from investors and creditors. Enron's was collapse overnight because the conviction of CEO Jeffery skilling for fraud, conspiracy, and insider trading addressed: ethical failings at the individual level. company leaders needed values based ethical decision making, not more rules and laws.

Enron started covering up their finances in 1997 when the organization started struggling. they brought on Chief Financial Officer Andrew Fastow to help, but that made matters worse. if you were in a leadership position at Enron during this time, What financial strategies do you recommend, and why?